The South West Development Commission has secured a provisional rail operating and track access licence from the Nigerian Railway Corporation, clearing the path for the introduction of regional passenger and freight rail services across existing rail corridors in Southwest Nigeria.
According to nairametrics.com, the development is expected to enhance inter-state connectivity, boost trade and logistics, and support broader economic transformation efforts within the region.This licence is not for building new rail lines, but to operate passenger and freight services on existing rail corridors already connecting communities, businesses, industrial hubs and economic centres across Southwest.
The licence authorises the commission to operate on both narrow and standard gauge rail networks and support the launch of the South-West Rail, Agro-Industrial & Logistics (SW-RAIL) Platform, a regional initiative aimed at improving logistic competitiveness, unlocking agro-industrial growth, strengthening mobility and accelerating economic development across Lagos, Ogun, Oyo, Osun, Ondo and Ekiti states.
Addressing reporters in Ibadan yesterday, the Managing Director/CEO of SWDC, Dr. Charles ‘Diji’ Akinola, described the development as a major transition from planning to implementation.
“This licence is not just a document. It is the green light to rebuild the Southwest’s economic spine on rail,” he said.
“We are moving from plans to tracks, from talk to trains. Our partnership with the NRC will put freight on rails, people on trains, and opportunity back into the hands of businesses and communities across the South West,” Akinola added.
The SWDC boss says the SW-RAIL Platform is being developed as a rial-anchored economic corridor intergrating freight systems, agro-logistics, industrial parks, inland logistics hubs, cold-chain infrastructure, port connectivity, passenger mobility systems, and transit-oriented developments.
According to him, Southwest remains Nigeria’s largest economic bloc, but continues to face major logistics bottlenecks, rising freight costs, congestion and supply chain inefficiencies.
He said: “The Southwest has enormous economic potential, but transportation inefficiencies continue to increase the cost of doing business. Rail provides an opportunity to address these challenges in a more integrated, scalable, and sustainable way.”
The initiative is expected to reduce logistics costs, improve freight efficiency, strengthen agricultural market access, boost export competitiveness, expand industrial activity, improve passenger mobility, and create jobs across multiple sectors.
By operating directly on NRC corridors, the SWDC aims to provide manufacturers, farmers, exporters, FMCG companies and logistics operators with a more reliable alternative to road haulage, easing pressure on major highways and reducing delays in the movement of goods and people.
The improved rail integration will strengthen connectivity between Apapa and Tin Can ports and key industrial, agricultural, and commercial hubs across the Southwest. Agricultural produce and manufactured goods will move more efficiently between production centres, markets, warehouses, and export terminals, while corridor-based economic zones are expected to stimulate investment, warehousing, agro-processing, and SME growth.
Akinola said the implementation model would be partnership-driven, pointing out that it would be open to collaboration with state governments, private investors, logistics operators, and international infrastructure partners.
The rail initiative is another SWDC’s flagship regional transformation programme following the launch of TransComs, a cluster-based development model focused on transforming rural communities into integrated economic hubs through agriculture, housing, enterprise development, logistics, and youth employment.
Together, both initiatives form part of the commission’s broader vision of building a more connected, productive, and economically integrated Southwest region under a “One Bloc Economy” framework.
